A bank-owned foreclosure, also known as a real-estate owned property, is a property that is possessed by the bank after an unsuccessful foreclosure auction. The lower property value of foreclosures is what usually attracts buyers to them. However, in purchasing bank-owned properties, buyers need to be aware of the advantages and disadvantages of going into such a deal. A major advantage - aside from the basement bargain price – is the fact that the buyer will only have to deal with the bank rather than the previous home-owner. In addition, the bank is likely to have waived any liens or tax property associated with the property.
However, given the circumstances under which these homes are likely to have entered the bank's possession, there are some factors that need to be considered before settling on a deal. Foreclosed properties are likely to be in need of additional repairs and updates before they are ready to be occupied.
Here's an infographic on everything you need to know about bank-owned foreclosures and how to purchase them.
